A Bitcoin wallet is a software program. The Bitcoins are stored for transactions and payments in this Bitcoin wallet software program. But Bitcoin is a virtual and digital coin. So, it cannot be stored like the regular currency. The Bitcoin wallet saves the private key, or the secret number, which is there for every Bitcoin address. This savings of private key is done in the Bitcoin wallet of that person, who is the owner of the balance.
Bitcoin wallet makes the transactions of Bitcoins, that is, it facilitates the sending and receiving of Bitcoins. Bitcoin wallets also provides ownership of balance of Bitcoin, to the Bitcoin user. Bitcoin wallets are available in many forms, such as, desktop wallet, mobile phone wallet, website wallet and hardware.
The Bitcoin wallet can also be divided in two main parts. The first is Hot Wallet, which can be installed on one’s personal computer or a mobile phone device. The owner of Bitcoins in the Hot wallet is in complete control of the security of stored coins in Hot Wallet. But as a Hot wallet is always connected with internet, its security may be questionable.
The second is Hardware Wallet. These Hardware wallets store the Bitcoins offline. So, the Hardware Wallet provides optimum security to the stored coins. The Bitcoins stored in a Hardware Wallet is always out of reach of hackers.
How to get a Bitcoin wallet?
1. A Desktop Wallet- It is a software program and is installed on the hard drive of the owner’s personal computer. A Desktop Wallet is not secured as the personal computer is connected with the internet and the Bitcoins stored in the wallet can be easily hacked.
2. A Mobile Wallet- It is one of the latest varieties in Bitcoin wallets. A mobile wallet is a mobile application, operating on every type of mobile operating system, including Blackberry. A mobile wallet is to be downloaded and installed by the user. It is the least secure Bitcoin wallet because if the mobile phone gets stolen, the Bitcoins may also be stolen by the thief.
3. A Website Wallet- It is a Bitcoin wallet that is hosted on a server, situated at a remote place. These wallets can be accessed by any computer from any location by the owner. There are website wallet service providers, providing services of web wallets to its users. This accessibility of Web Wallet makes them very insecure as it can be easily accessed by a hacker.
4. A Hardware Wallet- It is the most secured Bitcoin wallet because it provides offline storage to Bitcoins. It is a physical piece of equipment. It is exclusively designed to store Bitcoin. It needs to be purchased from the market and is installed with personal computer through a USB port. This wallet is plugged with the computer at the time of Bitcoin transactions only.
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